Adastra Labs Holdings Ltd. (XTRX) AI Stock Analysis

• Market Cap: C$1.29M
• Dividend Yield: N/A
• Average Volume (3M): 448.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -15.50%
• EPS Growth: -309.59%
• Country: CA
• Employees: N/A
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -0.19
• Shares Outstanding: 5,597,050
• 10 Day Avg. Volume: 928
• 30 Day Avg. Volume: 448
• PEG Ratio: >-0.01
• Price to Book (P/B): 8.69
• Price to Sales (P/S): 0.51
• P/FCF Ratio: 30.71
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: 117.39% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 45 Neutral
• Price Target: C$0.50 ▲(117.39% Upside)

Adastra Labs Holdings Ltd. has a low overall stock score primarily due to significant financial challenges, including declining revenue, persistent losses, and high leverage. Technical indicators suggest weak momentum, and the negative P/E ratio reflects unprofitability, further impacting the stock's attractiveness.

Adastra Labs Holdings Ltd. Business Overview & Revenue Model

Company Description

Adastra Holdings Ltd. operates as a cannabis extraction and processing solutions company. The company offers cannabis analytical testing, and cannabis processing services. It provides processing solutions to licensed cultivators of cannabis and hemp; and supplies cannabis extracts to qualified Canadian and international business-to-business partners. The company was formerly knowns as Phyto Extractions Inc. and changed its name to Adastra Holdings Ltd. in September 2021. Adastra Holdings Ltd. was incorporated in 1987 and is based in Langley, Canada.

How the Company Makes Money

Adastra Labs Holdings Ltd. generates revenue primarily through the sale of its cannabis-derived products. The company processes raw cannabis into concentrated forms like oils, distillates, and isolates, which are then sold to wholesalers, retailers, and other cannabis product manufacturers. Key revenue streams include bulk sales of extracts to other cannabis brands and white-labeling services for companies looking to market their own cannabis products. Adastra Labs may also engage in contract processing for other cannabis producers, providing extraction services in exchange for fees. Significant partnerships with established cannabis growers and distributors enhance its market reach and contribute to its earnings.

Adastra Labs Holdings Ltd. Financial Statement Overview

Summary

Adastra Labs is facing significant financial challenges, with inconsistent revenue growth, sustained losses, and declining equity strength. High leverage and negative cash flows exacerbate the company's financial risks, suggesting a need for strategic restructuring to improve profitability and financial stability.

Income Statement

Adastra Labs has shown fluctuating revenue growth, with a commendable increase from 2020 to 2024, but a decline in 2025 TTM. The gross profit margin remains positive, albeit declining, indicating some profitability at the operational level. However, persistent negative net income and EBITDA margins highlight ongoing challenges in achieving profitability, with significant losses impacting financial health.

Balance Sheet

The company's balance sheet reflects high leverage with a deteriorating equity position over time. The debt-to-equity ratio has increased as equity declined, posing financial risks. The equity ratio has significantly decreased, indicating a lower proportion of assets financed by equity, which could impact financial stability.

Cash Flow

Adastra Labs faces challenges with cash flow management, evident by negative free cash flow and operating cash flow in the TTM. The free cash flow to net income ratio is unfavorable, indicating inefficiencies in converting earnings into cash. Declining operating cash flow suggests difficulties in maintaining sufficient liquidity for operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	19.22M	24.84M	22.22M	13.30M	5.63M	2.50M
Gross Profit	6.87M	8.31M	7.57M	6.11M	1.94M	785.58K
EBITDA	-12.54M	-11.21M	-1.41M	-2.62M	-1.39M	-7.07M
Net Income	-13.77M	-13.24M	-3.54M	-4.28M	-2.75M	-8.07M
Balance Sheet
Total Assets	16.18M	19.34M	32.34M	31.80M	28.76M	13.74M
Cash, Cash Equivalents and Short-Term Investments	435.66K	1.30M	1.38M	1.01M	744.54K	1.15M
Total Debt	3.62M	3.62M	3.64M	3.95M	3.59M	2.50M
Total Liabilities	16.50M	17.89M	17.66M	13.57M	6.38M	3.65M
Stockholders Equity	-315.01K	1.45M	14.69M	18.23M	22.37M	10.09M
Cash Flow
Free Cash Flow	80.75K	410.06K	1.18M	694.07K	-1.64M	-4.63M
Operating Cash Flow	-96.07K	826.23K	1.86M	1.32M	-1.05M	-2.83M
Investing Cash Flow	-589.84K	-416.18K	-681.05K	-1.03M	-262.81K	-1.79M
Financing Cash Flow	-154.27K	-492.29K	-815.12K	-22.55K	915.98K	3.40M

Adastra Labs Holdings Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:XTRX, the sentiment is Negative. The current price of 0.23 is below the 20-day moving average (MA) of 0.23, below the 50-day MA of 0.28, and below the 200-day MA of 0.30, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:XTRX.

Adastra Labs Holdings Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
XTRX	45 Neutral	C$1.29M	―	-209.59%	―	-15.50%	-309.59%
CVGR	20 Underperform	$3.65M	―	49.80%	―	―	77.83%